Greg McCarvell on London Ontario Real Estate

Spring is here... in Ontario, I believe the weather has turned to the point where the snow isn't returning until next winter. You can enjoy your warm seasons so much better when you are in "warm season" mode. Here are my tips for adding 10% to your warm months each year.

- PUT AWAY. We store things for the winter and for the summer. Christmas decorations, winter coats, boots, skates, snow shovels, etc. Get these things in storage THIS WEEK... it will get it all overwith and you'll start enjoying the new season sooner.

- TAKE OUT. Unpack the patio furniture, find the spring jackets, dust off the bicycles, pull out the roller blades, unearth the gardening tools and turn on the outside water hoses. Take out all the things you'll eventually take out over time THIS WEEK... get into Spring!!

- Share a dumpster with neighbours. Offer to host a dumpster for 2 days with your closest 5 neighbours. Offer to split the costs and allow each one of you to get rid of the winter junk storage that no one bothered with.

- Sit in the sun. The next sunny day over 15 C, get out on a lawn chair and soak in some sun. It's good for the soul! This will kick start the relaxation part of the season.

Best of luck and enjoy the season!

The slant is often told towards the benefits of mature, resale homes. Hey, I'm one who's talked this talk many times. True enough, mature homes have significant advantages over newer homes - I should know, I bought my current home for just those reasons.

Tonight though, as I am updating the baseboard trim throughout the main level, I can't help but appreciate the benefits of building new or buying a home within 5 years of construction! Let me outline a few key benefits, some may apply to you while others don't, but everyone can agree there are benefits:

1) Updates not generally required. If you want to update a newer home it is usually to update the quality of finishings - maybe you put hardwood in where carpet was, perhaps some granite countertops or a big deck. These updates are more or less optional, where older homes can actually REQUIRE updates.

2) Young families. If you have a family with children, fact of the matter is, one key demographic that you will find in newer homes is families. I think nieghbours are important, I think having community interaction is important. If you have children, condsider this point.

3) The big stuff. If you tend to move every 10 or so years (or less), you can often be in and out of a newer home without ever doing any of the major improvements like furnaces, windows, roofs and flooring. Don't forget, while you usually save some money on the purchase price of an older home, you need to factor in the average monthly maintenance into the equation.

If you want some solid information about home builders in the London area see www.londonhomebuilders.com

There are a lot of angles to cover when you are selling a home! First you have the mediums: print, internet, direct, referral and more. Secondly you have many branches within each medium. Today I am going to tackle one very specific branch of internet marketing - the Virtual Tour.

What is a virtual tour? Some think of this as a warped image that is projected in such a way that it appears a first person navigatable shot of a room. This was the original concept. Today I think this is too narrow a box. In my mind a virtual tour is an online representation of a walk through.

Just like Realtors have different styles and techniques of showing a homes, they also have different styles of displaying properties online. Realistically though, this style also has a lot to do with budgeting. Realtors face to face showings are largely different because of personality - which is free! An online virtual tour takes investment of time or money on the part of the Realtor.

Trends and directions for virtual tours are interesting. I am finding less and less of the panoramic images and more video. Videos in many cases are painful to watch - editing video is much more complex than editing images. I am in the middle of having a new virtual tour technology developed that will combine the best of everything. Still photos in my mind give the best visual representation of a room. They tend to be better quality (as in less shakes). The new virtual tour will naturally flow between animated still photos and small video clips.

From a lead perspective, virtual tours are critical. In my market, this is the only link you have that connects you directly with the public. On your virtual tour site you can do what you want versus on the MLS sites you need to conform to the standard format.

Do you want stats? Do you want hard numbers on the London real estate market so far in the Spring? Sorry, you will have to read elsewhere ;)  This post is strictly my perspective - the pulse of the market. The truth is stats are history, if you are selling your property in the near future the pulse is what you are looking for!

A good Realtor spots trends, spots avenues to opportunity and areas of blunder on behalf of their clients. To date I am happy to say that for all listngs priced properly the market is quite brisk! You will notice I put a qualifier in to that statement...

The last two offers I put in on behalf of a buyer were multiple offers - 2 offers on the first and 3 on the second. Keep in mind the homes were both well priced. They were not priced like a fire sale, not being given away, they were WELL PRICED.

What would you say is the key to knowing where to price your home? There are a few key factors - proper home work and research, experience (as in years) and current experience (as in deals per month). Do you think it's rude to ask a prospective Realtor what their volume is? How many homes they sell in a typical month? Even more so to have them prove it (far be it for me to suggest a sales person would exagerate their performance!!)... I think you have every right.

Now don't get me wrong, many lower volume producers are fantastic - give their clients excellent service and are extremely competent. Common sense tells you that a Realtor who can spot the pulse of a market will be doing some deals right? They will have been in the thick of things recently.

How many deals is right? I think you should look for no less than an average of 3 deals per month. That's the bare minimum to know what is going on in most areas of London.

As I mentioned, pure opinion, but an opinion with some history and experience!

Have you ever run into an environmentalist who has an 'all or none' attitude? They are obsessed with perfection and often paralyzed by the same thing! I take a different approach - if a 30% improvement can be gained easily, using readily available technology without a huge investment and I can also convince 10 other people to take the same actions I think I'm doing a better service for the planet. We always need idealists, but physical progress in mass numbers is what we actually need to happen for things to move quickly.

Here are some very basic steps you can take to lessen your impact on the environment and probably save yourself a chunk of money on the way!

1) Replace your lightbulbs.Get energy efficient bulbs. It seems to me LED is the trend that's gathering a lot of traction right now. I'm having a hard time recommending anything with Mercury (CFL's in many cases). Should you swap out CFL's for LED? I can't say this is a great idea, the CFL's are going to end up in the landfill either way, so you may as well use them. The other option is to bring all your old Compact Fluorescents to a family member who still has a pile of incandescent bulbs burning.

2) Insulate. An easy, inexpensive way to conserve is to add insulation. Even if you built new chances are the level of insulation in the attic could be improved. Do some reading for your climate in particular and find out what is recommended for maximum efficiency. The other place to consider insulating is the siding of your house. I recently had my house resided with a shelter wrap type product underneath. The cost was about 10% more, but the gain in efficiency is substantial.

3) Fix leaky water sources. Check your outside taps, baths, sinks, utility areas and toilets. A resolved drip can make a huge impact.

4) Get out the caulking! Sealing air leaks around doors, windows and other openings can go a long way toward decreasing the amount of air leakage.

5) Plan your trips. Gas money is not the best way to spend. Limit your trips to the store, plan when you can and attend errands in the same general part of the city while there for other reasons.

6) Open your curtains. If you find yourself leaving lights on during the day, maybe it's because you have too many curtains closed. Natural light is a better and free alternative during the day.

7) Get an electric mower.I know the cord can be a pain, but there are effective ways to manage this concern. You'll be glad you didn't buy a polluting 2 stroke gas mower when you notice you aren't pouring gasoline all over your shoes and waking up the neighbours with the eardrum breaking noise!

8) Avoid lawn sprays.Many municipalities are now banning certain types of lawn sprays. You know when the goverment finally gets around to banning a product that it must be bad! Save your money and enjoy the status of being the 'new cool'... you can only be 'new cool' with imperfect lawn!

9) Exercise for real.I remember clearly one day I was about to get on my treadmill while training for a marathon. I started it rolling as the lights dimmed due to the strain these machines take on the electrical system. Then I looked outside - it was a beautiful sunny day. Why was I running inside? Get outside and exercise! Another thing to do is pair up your exercise with errands - take your bike shopping, ride to your Mom's place to drop off those photos - you get the idea.

10) Adjust the furnace / AC. A couple degrees up or down can reduce the amount of energy used substantially. Get a programmable thermostat - you have different needs when awake and when sleeping - when you're home and when you're not home.

It's a struggle at times. Real Estate sales is a competitive business... quite honestly, the most competitive that I've personally experienced. Some businesses are more price sensitive, some are more prone to shopping around, but none are as competitive on so many fronts. This is the reason it seems that so many Realtors are secretive when it comes to providing meaningful help to co-workers.

I can understand the protectionist mentality. We all work very hard as Realtors to develop a broad offering of services. It seems like you are throwing away your competitive advantage if you share your thoughts on how to operate the business. I think you should ask yourself the real question first though - how many times are you really up against that particular person for a listing or buyer client? Even if you answer "all the time, I'm in small town"... I still don't buy it. You can have 20 people deliver the same information and top performers will still be at the top of the pile. It's a beautful thing called personality.

I am guilty of sharing everything - if someone asks - I'll tell them. I don't care in the least. First - I have a substantial financial investment in my systems, not everyone I talk to has the finances to duplicate what I've done. Secondly, I have a MASSIVE amount of time invested. Just look at my blog as one small indicator. You can't just spend a night and create an extensive collection of first hand real estate writings.

The internet opens up a whole new avenue. Geographics are no longer an issue. There are many venues where you can start to develop mastermind groups where the members have no physical capability of crossing paths. I think this is so powerful because you automatically see the barriers of the protectionist mentality stop.

If you're a new agent, an agent who has been around for awhile but wants some fresh ideas or a top producer in your maketplace and you think I have an answer that you could use - drop me a line, I'd be more than happy to give you my take on it!

Greg

I've seen a drastic increase in the number of listings with Wells Fargo, HomeTrust, TD Canda Trust or some other financial institution in the Seller's description. Obviously someone wasn't able to pay the bills anymore; It comes with the territory in an economic slowdown. This is just a quick entry with some tips on purchasing these properties.

Buying as-is - Frequently you will see the description include all kinds of words and phrases that seem to be the opposite of selling points. Comments like "no guarantees implied", "purchased as is - no warranties", "UFFI cannot be verified". Due diligence is always important - do a home inspection, follow up any possible issues and also have some room in the budget for unknown problems. This is not neccesarily an indicator of a home that has problems. A bank will throw every disclaimer at the buyer possible to relieve as much responsibility from the property as they can.

What if there's a problem - Recently a client made an offer on a bank sale property. On home inspection there was obvious water problems in the basement (sometimes it pays to do inspections on a soggy day!). We took what I feel is a good course of action - had a contractor give us a formal estimate on what it would cost to rectify the problem and made the bank aware of this information. We ended up negotiating a price that included a full subsidy for the basement issue.

How low is too low? Generally I work off common sense - at what point does it make sense for the seller to reduce the price and remarket the property versus accepting your offer? Say you had a house listed at $280,000 - I would say anything under $250,000 probably is out of the question. The reason is that is if the bank reduced the price by $15,000, re-marketed the property and sold for $260,000 after 2 months, they are still ahead of the game. Keep in mind that a bank will almost often want more than your inital offer. I had one circumstance where they specifically said they would not sign back - just accept or reject.

It is quite easy to pull off a list of bank sales. These houses all have a value - maybe the banks aren't doing the best job at pointing out the benefits, but they sometimes are no the bargain most people would think the are. Do your homework and be sure the value is there.

My most recent blog about the importance of photography in promoting listings prompted a number of requests for more detailed information and tips. Below is a summary of how to ensure you're working towards a best practices.

Photography Tips as they Pertain to Promoting Listings

Photography is essential to effectively promoting your listings. I could make many arguments that it is in fact the NUMBER ONE priority. A picture is worth a thousand words - likewise a bad picture is also worth a thousand words. Photography is the basic building block of all marketing in real estate - in particular with consumers having so much more direct access to listing information via the internet.

To qualify the importance of photos, ask yourself these questions - the answers and how photos relate to your marketing priority will be evident:

- What is the effect of having a listing with no photos? What about a listing with only one photo?
- Have you ever caught yourself not obtaining detailed information on a listing because there are no photos to give you an idea of what to expect?
- Have you ever been in a listing where the photos made the property look much better than real life? What about worse?
-Have you ever insisted on seeing a property in person because you know it couldn't possibly be as bad as the photo portray it?

Photos have a huge impact on the traffic your listing will experience - no one can argue against this fact. A nice bonus is that good photography also makes your additional marketing tools look better!

- Take a critical look at where you are currently. Take a real look at what you are currently doing. Compare your photos to some of your competitors. If you need improvement, take some of the tips outlined here and implement them.

- Learn about the technology of image files. You need to understand the fundamentals of a digital image file. I am assuming everyone works with a digital camera at this point. One thing you should learn right out of the gate is to resize images. A 10 megapixel camera creates images that are massively over sized for the typical needs of a Realtor. Images are made up of "pixels" or dots. Your images can likely be sized to 1280 x 960 and service any needs you have. I always keep an archive of my full resolution photos just in case, but for emailing, uploading etc., 1280x960 works much better (relative to a 4:3 aspect ratio, please read the tip on Aspect Ratios). Also learn about image file types. Depending on your editing software, images can be stored in a variety of formats. Some common file formats include JPEG, PNG, GIF and BMP. From my experience, you can't go wrong with JPG as it's compatible with most other systems for uploading etc. JPG's allow for compression, keep compression to a higher level for better quality.

- Get some fundamental skills. Consider being trained as a prosumer (a consumer who took the time to learn the basics!). You can sometimes find a weekend course offered through a college or camera specialty shop. Learn about fundamentals like exposure, your camera controls, using flash and camera angles. Another option is virtual training as I've outlined in the training tip - the internet allows for so many possiblities. Get personalized training virtually anywhere (see www.sparkphoto.ca for an example)

- Consider the help of a professional. Below I have set up an outline of a recent experiment. I joined my photographer on a shoot and took pictures side by side with her using two cameras, my current camera (the Panasonic LX3) and my previous camera (a Canon Powershot SD300 from a few years ago). You will see the differences a professional can make!

From Left to Right - consumer camera, prosumer camera and the professional. Notice the colour, clarity, wide angle characteristics and the light control in the window areas.

Some comments on using a professional photographer. Yes, they expect to be paid. I know what I pay, and it's well worth the money (it saves me time and give me a better product). Be sure you work with someone who knows REAL ESTATE PHOTOGRAPHY!! My photographer specializes in this type of work. Indoor areas with windows, light variation etc. are very complex and generally need touch up on the computer. Contact me if you would appreciate tips on selecting a photographer. What about the real world? Does it make a difference? Take a look below! Here are some previous photos of a listing I have... do you think this makes a valuable listing tool for me? You bet!

- Be digital. I don't think I need to say this, but if you're using film - stop. It's less expensive and more convenient to get a digital camera. Besides, you can take multiple shots and delete the bad ones without it costing you a penny!

- Source and invest in the right equipment. If you choose to use a professional, this is not your concern. If you are doing photos yourself, get the right equipment. You will need the following:

* a relatively modern computer (it will speed things up for you in the long run). Probably anything within the last 2 years will be fine. My personal advice is to buy a new machine rather than upgrade. I generally replace every 2 years. Likely cost is $800.

* a camera (see the point on camera selection). If you agree with the wide angle argument, probably $450.

* an external flash that you can bounce flash off the ceiling. Probably $300 or less.

* a good sized memory card for your camera, $15 - $20 2GB or larger.

* a good case for your camera, $40

* a tripod is never a bad idea, in particular with low light conditions. I would think these would be roughly $40.

* If you use a laptop, consider an external monitor, it gives you more room on the screen to work (if you get a higher resolution monitor).

- Buy the right camera. I recently spent a lot of time shopping this topic until I dropped! If you're inclined to go pro level equipment, be prepared to shell out big dollars! I wanted a camera that was compact (so I could put it in my bag), would accommodate my needs and was expandable. The Panasonic LX3 was just being introduced when I purchased - I had to order it specifically. It has a 24mm wide angle (compared to a 30+ on most consumer cameras) and enough settings to impress my photographer. It is marketed towards avid photographers who don't want the bulk. This camera is ideal for real estate shots, possibly not the best pick for pictures of your kids because the zoom is very low (2.4X due to wide angle requirements). This camera also has the ability to be expanded with an external flash and a wide angle adapter lens (to take it down to 18mm). Overall, I am very happy with this purchase. It cost me about $450 CDN and can likely be ordered through a decent Panasonic camera dealer.

- Keep your equipment in good repair. A smudge on your lens will impair the ability of even the best camera! A case for your camera is a wise investment. Likewise, think twice before leaving cameras, lenses or flashes in a car during extreme heat or cold for long periods of time.

- Learn about some software tools. There are a number of free software tools for editing photos that have enough features for most people. Not many Realtors can jump into Adobe Photoshop and be productive - this is for professionals. Try Google's Picasa program if you have a PC and iPhoto if you have a Mac. Picasa is superior in my opinion because iPhoto makes it difficult to work with images in their native directories, but both allow for resizing, colour correction, brightness/contrast and cropping. For more advanced users and people who do there own website development, I personally enjoy Adobe Fireworks (which is not free). I am missing many, many other tools, that I am sure exist. The other thing with Picasa is that you can sign up for an account that makes high res photo album creation a two click process. Proper training on software is essential (see my tip on training for more info)

- Bounce Flash. A flash straight on (as built in flashes produce) can be a problem. Some items at close range will light right up and shiny objects will create reflections on the wall or wherever they reflect the flash. An external flash that can be aimed will provide more flexibility. You can then experiment with bouncing flash off the ceiling for a more distributed, even light.

- Understand what the term Aspect Ratio means. Aspect ratio is the ratio of height versus width in your photo. Have you ever seen a photo where the house looked squished? Probably this is an automated website manipulating photos outside of it's aspect ratio allowances. Most cameras today create a 4:3 ratio - although over time the wide screen format seems to be making inroads - usually in a 16:9 ratio. The Panasonic LX3 gives you all three options with the flick of a switch - this is a very nice option. I would say as of this writing, stick to the 4:3 ratio until you notice all your marketing providers are supporting wide formats. Typical image sizes (pixel dimensions) you will see are: 320x240 & 640x480. In a previous tip I recommended you format your photos to 1280x960 - which is a scaled up 4:3 ratio file. Below I took three photos of my office in the 3 prominent aspect ratios. 2:3 which is prominent in printed photos (ie. 6x9), 4:3 which is probably the most common format for digital cameras, 16:9 which is becoming common in television and movies.

- Think about what would impress a consumer. In my opinion, the main objective in listing photographs is to generate leads and showings. I've seen Realtors take photos of the furnace room and electrical panel. I can see the value in this to some degree, but I find these technical elements are better described in text. Personally, I take photos of what will stir people's emotions. That may include a full room, part of a room from a certain angle or even the stream and pond out back.

- Consider getting training. Training is essential. You may find training in a number of different formats and venues. A local camera shop, a community college or private learning center may offer courses. I know my photographer offers a virtual learning environment where she will train you on your specific camera, the software to enhance photos and everything else online (through screen sharing technology). Brick and mortar learning facilities vary depending on your area, for a start on virtual learning, take a look at www.sparkphoto.ca.

- To take good photos, it helps to have a nice looking home. Everyone has learned about staging and everyone has an opinion on this topic. Just remember, even the best camera and most skilled photographer cannot make miracles happen! Declutter, clean up and take staging to whatever level you are accustomed to, your photos will reflect this effort.

- Lighting and why it's such a big deal. The inside of a home is one of the trickiest places to do photography. We are hampered by tight rooms, varied lighting and a client's taste of decor. I tend to turn on all the lights. I have not perfected this part of my process, so I can only tell you what to look out for - I'll leave it to a trainer to take care of solutions! Watch out for "blown out windows". This is where the window has a huge hue around it from the extreme light versus the rest of the room. If this happens you will know. See the consumer camera shots in this article. Watch out for dark rooms. These rooms are best taken care of by a big, add on flash. Learn when to use flash and when not to. Flash is not a good thing for very close range objects.

- Beware of mirrors. Most obviously, don't take a picture when you are in the mirror. If you have to, stand out of the picture and put just your arm into the picture. A not so obvious issue is flash. Flash into a mirror creates a terrible effect. The same thing can be said about many glass or shiny surfaces. If you have ever seen a strange shape on the wall in a photo that is never there in real life, it could very well be that chess piece on the glass table reflecting to the wall.

- Get seasonal photos from your client. If you live in a climate with snowy winters, ask your client if they have photos of the exterior during the spring or summer. Ideally there would be no people in the photos - use your own discretion. Do mention specifically to your client that the photos will be publicly visible. You may find a little colour correction or brightening is needed.

- Learn a photo sharing site for higher resolution image options. I will mention Picasa again - this photo managing site also allows you to sign up for a web albums offering with more storage than you will likely ever need. Be sure with any photo sharing site to read the terms of service - many of these sites retain copyright privileges.

- Take many pictures with different angles and repeats. If you take several images of each room and angle, you have a more likely chance of getting a photo that will not contain errors or problems. Like anything else, practise will improve your photo taking ability. - Favour quality over quantity when publishing photos. At this particular time, my opinion is that for most properties 10 - 15 photos is ample. For luxury homes or more complex properties you may consider more. Remember, the main goal is to create a great impression of the property, not necessarily document it's every detail.

- Be careful of file size if you build your own websites. Have you ever run into a website where the photos seem to load very slowly? Sometimes this is because people have resized their photos in the HTML code of the web page, but not the actual file itself. Pay attention to the pixel dimensions of the file.

- Sometimes you need to crouch. I learned this from a client - he ran upstairs and took a photo of a bedroom while I was filling out listing forms. When he returned, the photo was great! I asked what he did and he told me he crouched. Simple tip, try being both low and high (hold the camera over your head and aim as best you can.

- Learn your marketing platform. You need to know both the limitations and capabilities of your marketing platform. What resolution does your MLS board support? What aspect ratio works best with your outside vendor website? If a marketing platform can utilize a larger resolution file, I recommend you send them in that size. There is nothing more frustrating to a consumer to see the ability for a high res shot and it not be available.

- You don't have to shoot the bathroom. Tight rooms can rarely be done justice in photos. If the bathroom is a highlight of the listing, then by all means do your best. Sometimes taking a photo from one side an then an additional from the other side will give consumers a better perception of tight rooms.

- Turn your camera 90 degrees. Cameras generally take photos that are wider than they are tall. Take a photo on it's side if it makes more sense. Be sure to always take a standard photo - many marketing platforms don't deal well with portrait landscape photos.

A picture is worth a thousand words. Everyone has heard the phrase. More often than not this is an accurate description to illustrate the power of images. This is as applicable to real estate sales as anywhere else. It seems today that buyers filter on the internet before anywhere else. If the photography that your Realtor provided is substandard you will feel the negative effect. Conversely, if your photography is spectacular, you will enjoy the positive benefits of a great first impression.

Let's test the "picture worth a thousand words" statement! Below are a series of photos from a home I have listed. It was an expired listing, so I've posted the previous listings photos side by side with the similar shot from my listing.

Wow! Do you now SEE how this can affect the amount of showings you experience? What about the anticipation level of the buyers? I bet you have at least a thousand words that could describe the effect this has on your marketing overall.

Believe it or not this is a mild example. I had to make cropping adjustments to the professional photographer's shots because the aspect ratios were different... had the pro been using a wide format like the standard photos - the difference would have been even more dramatic.

I think it will make for a great future post to write about some photography tips - one tip being - don't take photos at night like this person did!

If you want the best first impression - get great photos. I would be happy to explain the process I use to make sure this crucial element of marketing is spectacular with my listings.

Greg McCarvell

Blogs can be boring. I debated many times before I committed to start one. The main reason blogs can be boring is that creating interesting, meaningful content takes time and commitment. Many people see the trend of blogs, see the benefits behind developing a dedicated reader base and want the results – they don’t understand that the fabric of the result is in the content. Many do what they think is a short cut – they cut and paste market trends or other standard industry news into their blog thinking they are adding value. I would tend to disagree with this approach.

Don’t get me wrong, I am all for market trend summaries, thoughts on the marketplace in general and those types of entries – but a blog is supposed to be a personally opinionated medium. They are also intended to show the personality of the author and give people an idea of the person behind the writing. As you will notice, each and everyone of my entries is 100% original content. I intentionally inject a lot of opinion and personal views into my writing so people can benefit by agreeing or disagreeing with my viewpoints.

So in summary:

- if you want to see real estate statistics for London & area – go to www.lstar.ca

- if you want to read stats about housing prices, starts and other information, try www.cmhc.ca

- if you want to read about my listings, go to www.homeslondon.com

If you want to know what I think about real estate – you are in the right place!